Det norske – a new large independent
Odd Ragnar Heum, Det norske
oljeselskap ASA
A new large independent
Who we are...
How we will operate…
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A fully fledged O&G company
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Among the largest European
Independents
Value driven and disciplined in
everything we do
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Focused around our core areas
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A challenger on the Norwegian
Continental Shelf
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Efficient in how we run all our
operations
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An operator with a unique asset
base
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Agile and flexible in the way we are
organized
Greater Alvheim Area
Ivar Aasen
Johan Sverdrup
Exploration
A new era for Det norske
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Acquisition of Marathon Oil Norge AS
completed:
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Closing on Oct 15, 2014 as per plan
Integration process completed in 4 ½
months
Greater Alvheim Area – new great operator
position
Development Projects:
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Bøyla field to commence production early in
2015
Ivar Aasen development on schedule
Johan Sverdrup development on schedule,
Impact Assessment submitted, unitisation
negotiations ongoing
Ceremony on the Alvheim FPSO
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Short term priorities
Drive execution:
Build optionality:
n Deliver the Ivar Aasen development
n Continue to optimize the capital structure
n Maximise value from the Alvheim area
n Cost efficiency
n Secure position in Sverdrup unitisation
n Long-term reserve replacement strategy
n Ensure successful integration of MONAS
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Production
Det norske’s producing assets
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The Greater Alvheim Area
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Alvheim, Vilje, Volund and Bøyla*
Approx. 100 000 boepd
Around 90% oil
Alvheim FPSO – 150 000 boepd
capacity
«Alvheim FPSO»
Alvheim
Other producing assets
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Jette (operator)
Jotun
Varg
Atla
Volund
Bøyla*
* Q1 2015
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Vilje
ALVHEIM
Extending the Plateau
§ Deliver the IOR projects
§ Mature additional infill opportunities
Area gas strategy
§ 20000
Gross BOEPD
0
Gross volumes from Alvheim, Vilje and Volund produced across Alvheim FPSO
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ALVHEIM
Increased reserve&resource base
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Development
Projects
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BØYLA
Production to commence in Q1 2015
The diving support vessel Scandi Arctic prepares wells on Bøyla
The diving campaign to continue through Q4
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Project on schedule for a Q1 start-up
Diving campaign ongoing
The Alvheim FPSO is ready to
receive Bøyla production
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IVAR AASEN
Ivar Aasen field development
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Volume increased from 150 to 210
million boe - 35 percent increase
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74 million boe to Det norske
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Two new licenses in Ivar Aasen Unit,
PL457 and PL338
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Det norske has 34,78 percent working
interest
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IVAR AASEN
From a global perspective
Drammen:
Mechanical couplings
pipeline Aasen - Grieg
Oslo:
Pipelines and cable
Stord:
Living quarters
Stavanger
Maersk CJ70 rig
Trondheim:
Project management
Trondheim:
Operations
Trondheim/Oslo:
EICT
Kuala Lumpur:
Engineering
London:
Engineering
Sense/France:
Well head and X-mas trees
Sardinia
Jacket
Singapore
Topside
50 percent of the development is delivered from Norway
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IVAR AASEN
Development on time and budget
2012
2013
2014
2015
2016
H1 H2 H1 H2 H1 H2 H1 H2 H1 H2
Concept selection
FEED studies
PDO approval
Unitisation Agreement
Construction of jacket
Construction of topside
Construction of LQ
Maersk Interceptor to
Norway
Drilling of geo-pilots
Ivar Aasen development concept
Jacket lifted into place
Drilling of production
wells
Topside to leave SMOE
yard
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JOHAN SVERDRUP
A new giant at the NCS
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Impact Assessment submitted
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Submitted 3 November, as a part of the PDO
PDO expected to be sanctioned by the
Norwegian Parliament in the 2015 spring
session
Between 1.8-2.9 bn boe
A real giant
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The most profitable industrial projects for the
Norwegian society in decades
The biggest NCS development ever in one
phase?
Approximately 51,000 FTEs employed in the
development phase, approximately 3,400 in the
operations phase
First phase
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Capex estimated to between NOK 100-120
billion
Estimated production of 315 000 – 380 000
boepd
More than 70% of the total resources can be
produced from the first phase facilities
Future phases
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No concept or investment decision made
with regards to future phases, and estimates
for future phases are therefore largely
uncertain
Preliminary estimates indicate full-field capex
in the range of NOK 170-220 billion, with a
plateau production of 550 000 - 650 000
boepd
JOHAN SVERDRUP
Project status
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Appraisal program completed
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32 wells in total
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Phase 1 DG3/PDO work ongoing
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FEED to be completed by November
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Aker Solutions is the main FEED contractor
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Kvaerner set to deliver two of the steel jackets
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Riser platform 2017
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Drilling platform 2018
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Full Utsira High electrification within 2022
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Phase 1 to supply Johan Sverdrup only
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Norwegian Parliament has decided that full
Utsira High electrification shall be
implemented by 2022 (~200 MW)
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Unitization negotiations ongoing in parallel
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High stakes
The J ohan Sverdrup concept
JOHAN SVERDRUP
First oil in 2019
Concept selection Impact Assesment Study PDO submittal and unitisation agreement PDO approval - Phase 1 Engineering, Fabrication & Construction 2014
2015
2016
2017
2018
2019
Installation of templates Pre-drilling of wells Installation of jacket for riser platform Installation of jacket for drilling platform Installation of platform deck for riser
platform Installation of platform deck for drilling
platform Installation of jacket for process platform Installation of jacket for living quarter Install power cable from shore Install export pipelines Installation of platform deck for process
platform The J ohan Sverdrup concept
Exploration
EXPLORATION
2015 Preliminary Drilling Activity
2015 Drilling strategy
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Prioritizing near field exploration (ILX)
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Mature existing discoveries
Value creation from tie-back candidates
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Revisiting the exploration potential in
the greater Alvheim area in light of the
Marathon acquisition
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5-7 exploration and appraisal wells
65 exploration licenses
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26 operator
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39 partner
2015 wells in the North Sea and the Barents
Outlook
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OUTLOOK
Summary and Outlook
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Business development
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Financial
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Secured the financing until first production from Johan Sverdrup field
Field developments
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Maintain aggressive portfolio optimization through business development
Finalize the Bøyla field development
Ivar Aasen development progressing according to plan
Johan Sverdrup unitization negotiations ongoing, PDO submittal in Q1 2015
Revisit the Alvheim area to realize upsides
Exploration
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5 – 7 wells in 2015
Revisit greater Alvheim area exploration strategy
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Always moving forward to create
value on the Norwegian shelf
Our way
Our leadership
principles
Value driven
& disciplined
Drive
performance
Develop
people and teams
Focused around
our core areas
Always
search for
improvements
Efficient in our
operations
Agile & flexible
in the way we
are organized
Make decisions
based on data
and analysis
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Reliable Committed Responsible Enquiring